Question: Multi Part Question. Please explain your answer. Please try typing your answers. SHOW ALL YOUR WORK. Information for Drone On Limited is shown below: Selling
Multi Part Question. Please explain your answer. Please try typing your answers. SHOW ALL YOUR WORK.

Information for Drone On Limited is shown below: Selling price Variable expenses Per Unit $1,000 800 Percentage of Sales 100% 808 Contribution margin $ 200 208 Total fixed expenses are $100,000 per month, and Drone On Limited is selling 1,000 drones per month. Required: 1. The marketing manager argues that a $5,000 increase in the monthly budget to prepare webinars would increase monthly sales by 50 drones. Should the webinar budget be increased? O Yes 2. Refer to the original data. Management is considering using higher-quality components that would increase the variable cost by $80 per unit. The marketing manager believes the higher-quality product would increase sales by 15% per month. Should the higher-quality components be used? O Yes
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